Pros and cons of investing in gold

Hi Sir/Madam,

Straight into it.

What are the pros and cons of investing in gold?

I will list the key points in which you need to understand to invest and trade gold.

The pros of investing and trading gold:

  1. Gold is a great hedge against a down market, it is a safe and secure asset- which has proved to always hold a strong long term value.
  2. Gold remains to hold strong value, even when there is a drop in the value of paper currency.
  3. Gold has always proved to rise in value over the years, the past suggests that the future of gold is strong.
  4. Gold is a highly liquid asset, it is easy to buy and sell- it allows flexibility in your investing and trading.
  5. It is easy and simple to invest and trade gold, you do not need any experience of special knowledge.
  6. Gold can help offer diversification in your investment portfolio.
  7. Gold offers a security of value, short term and long term.

The cons of trading and investing in gold:

  1. It can be costly to store gold physically.
  2. It does not produce passive income like some of the other investment options do.
  3. Gold has small, to relatively low capital gains.
  4. Gold has volatility short term, the price fluctuations may cause some investors dissatisfaction with the asset.
  5. Gold is vulnerable to theft.
  6. The asset does not earn as greater returns as other investments do.
  7. Gold does not offer above average returns long term.

Thank you for reading,

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